Question: Show that forecasts produced by an ARIMA (0,1,1) model: Yt Yt-1 = et 0.6et-1 are equivalent to those produced by single exponential smoothing: Ft+1 =

Show that forecasts produced by an ARIMA (0,1,1) model: Yt Yt-1 = et 0.6et-1 are equivalent to those produced by single exponential smoothing: Ft+1 = 0.4Yt + 0.6Ft.

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